Does anyone know how the settlement process works between the Forex broker and the liquidity providers?
I am interested in starting my own ECN forex brokerage firm for Chinese clients. But I am unclear how the settlement process works between what will be my brokerage and the liquidity providers, and what hoops I will have to jump through when establishing my relationship with them.
I collect the funds from my clients, and put them into segregated accounts with my firms bank; but how and when are client's profits and losses settled with liquidity providers? I cannot picture in my mind the mechanics of it, especially with multiple liquidity providers.
Any useful links would be gratefully appreciated.
Phil
I am interested in starting my own ECN forex brokerage firm for Chinese clients. But I am unclear how the settlement process works between what will be my brokerage and the liquidity providers, and what hoops I will have to jump through when establishing my relationship with them.
I collect the funds from my clients, and put them into segregated accounts with my firms bank; but how and when are client's profits and losses settled with liquidity providers? I cannot picture in my mind the mechanics of it, especially with multiple liquidity providers.
Any useful links would be gratefully appreciated.
Phil